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Home My WebLink AboutCity of Tamarac Resolution R-2017-119Temp. Reso. 13021 October 10, 2017 Page 1 of 3 CITY OF TAMARAC, FLORIDA RESOLUTION NO. R-2017-� A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA, AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO EXECUTE AN AGREEMENT WITH CIGNA, PROVIDING FOR STOP LOSS INSURANCE; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City's health insurance was re -structured as a partially self - insured program effective January 1, 2013; and WHEREAS, in the fall of 2017, the City's benefits consultant Lockton Companies competitively marketed the Stop Loss Insurance Coverage for Plan Year 2018; and WHEREAS, as a result of the marketing of the Stop Loss Insurance Coverage, Lockton Companies presented the City with three proposals for stop loss coverage; and WHEREAS, after detailed evaluation of the proposals, and with the assistance of Lockton Companies, City staff has determined that CIGNA's proposal provides the City with the most cost effective program which includes a level of reinsurance protection that is prudent and appropriate; and WHEREAS, available funds exist in the appropriate Governmental Funds which are in the approved FY 2018 Budget to fund the City's Stop Loss Insurance; and WHEREAS, it is the recommendation of the City Manager, the Director of Human Resources, and the Director of Financial Services that the City execute a contract with CIGNA, as described in the Proposal attached as Exhibit 1, for Stop Loss Insurance Temp. Reso. 13021 October 10, 2017 Page 2 of 3 subject to any revisions as may be negotiated by and between City staff and CIGNA and as approved by the City Manager and the City Attorney effective January 1, 2018; and WHEREAS, the City Commission has deemed it to be in the best interest of the health, safety and welfare of citizens and residents of the City of Tamarac to execute such Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA- SECTION 1: That the foregoing "WHEREAS" clauses are hereby ratified and confirmed as being true and correct and are hereby made a specific part of this Resolution. All exhibits attached hereto are incorporated herein and made a specific part of this Resolution. SECTION 2: That the appropriate City officials are hereby authorized to execute contract documents with CIGNA, as described in the Proposal, attached as Exhibit 1 for Stop Loss Insurance, subject to any revisions as may be negotiated by and between City staff and CIGNA and as approved by the City Manager and City Attorney. SECTION 3: That all resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. SECTION 4: That if any clause, section, or other part or application of this Resolution is held by any court of competent jurisdiction to be unconstitutional or invalid, in part or application, it shall not affect the validity of the remaining portions or applications of this Resolution. Temp. Reso. 13021 October 10, 2017 Page 3 of 3 SECTION 5: This Resolution shall become effective immediately upon adoption. PASSED, ADOPTED AND APPROVED this 15 day of �� '�� , 2017. '1 y HARRY DRESSLER MAYOR ATTEST: - q� TV PATRICIA TEU L, CMC CITY CLERK RECORD OF COMMISSION VOTE: MAYOR DRESSLER DIST 1: COMM. BOLTON DIST 2: COMM. GOMEZ DIST 3: COMM. FISHMAN DIST 4: VICE MAYOR PLACKO C I HEREBY CERTIFY THAT I HAVE APPROVED THIS RESOLUTION AS TO FORM SAMUEL S. GOREN CITY ATTORNEY ,yp City of Tamarac Current Plan Renewal - ASO 11112018 ASO Fees and Stop Loss Rates OAPIN OAP1 OAP2 Total Administrative Service Fees $ 17.88 $ 17.88 $ 17.88 $ 75.740 Network Access Fees $ 21.10 $ 21.10 $ 21.10 $ 89,380 Total PEPM ASO Fee $ 38.98 $ 38.98 $ 38.98 Employees 304 25 24 Current Annual Administrative & Access Fees $ 142,199 $ 11,694 $ 11,226 $ 166,119 Administrative Service Fees $ 17.88 $ 17.88 $ 17.88 $ 75,740 0.0% Network Access Fees $ 21.10 $ 21.10 $ 21.10 $ 89,380 0.0% Total PEPM ASO Fee $ 38.98 $ 38.98 $ 38.98 Employees 304 25 24 Proposed Annual Administrative & Access Fees $ 142,199 $ 11,694 $ 11,226 $ 165,119 0.0% Stop Loss Current $ 106.17 $ 106.17 $ 106.17 $ 449,736 Proposed $ 118.64 $ 118.64 $ 118.64 $ 502,559 Lives 304 25 24 Proposed Annual Individual Stop Loss $ 432,799 $ 35,592 $ 34,168 $ 502,559 11.7% • Pooling Point $ 150,000 • Contract Type Paid • Rx Accumulation Y • Commissions (Net or 56) Net Current Proposed Lives Proposed Annual Aggregate Stop Loss • Pooling Point $ 150,000 • Corridor Amount 118% • Contract Type Paid • Minimum Attachment Percentage 100% • Rx Accumulation Y • Commissions (Net or %) Net $ 10.76 $ 10.76 $ 10.76 $ 45,579 $ 12.48 $ 12.48 $ 12.48 $ 52,865 304 25 24 45,527 $ 3,744 $ 3,594 $ 52,865 1 Current Total Annual Stop Loss $ 495,315 Proposed Total Annual Stop Loss $ 555,424 12.1°k Date Prkuad: 10116n0n -11pC1gna. City of Tamarac Current Plan Renewal • ASO 1111201E ASL Attachment Point Calculation 13 Total Adjusted Annual Claims S 5,303,411 .. s• S 244,295 S 96,560 $277,963 $100,698 x Corridor 118% 118% 118% 118% 118% 118% 118% Projected Claims with Corridor 56,258,025 Minimum Attachment Percentage 100 % Projected Illustrative Minimum Attachment Point S6,258,025 Projected lives 353 304 25 24 Projected Monthly Deductible Factors $1.074.78 S 407.95 $1,093.32 S 396.08 S 1,000.93 S 395.63 Projected Combined MDF S 1,482.73 $1,489.40 S 1.396.56 Current Minimum Attachment Point $ 5,303,955 Current Corridor 118 % Current Monthly Deductible Factor S 1,288.21 S 1,321.26 $1,256.89 MDF Increase 15.10 % 12.73 % 11.11 % The minimum attachment point for the current contract year is the greater of (1) the sum of each months number of employees multiplied by the Monthly Deductible Factor(s) or (2) the Minimum Attachment Point. For illustrative purposes, the Minimum Attachment Point, included in the total daim spend with corridor for the current year, has been calculated with the current month's enrollment limes the current Monthly Deductible Factor(s).